Congressional Budget Office is an agency of the United States Congress. It provides members of Congress with information on the nation’s economy, the federal budget, and federal programs. The office, often called CBO, does not recommend policies. Instead, it presents optional plans and programs, and studies their possible impact on the budget.
Each year, CBO reviews and analyzes the president’s budget proposals. It prepares a forecast of the cost of continuing, usually for 5 or 10 years, the existing federal policies affecting taxation and spending. CBO staff members regularly testify before congressional committees on budget matters. CBO helps budget committees in the Senate and the House of Representatives prepare annual proposals. The agency also keeps track of congressional spending and revenue actions and issues reports on major budgetary options.
CBO was created by the Congressional Budget and Impoundment Control Act of 1974. Congress passed the act to affirm its constitutional authority over the United States budget and to establish an independent source of economic and budgetary information.
See also Budget (Preparation of the U.S. budget).
